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Bill

SD 1933

An Act relative to insurer responsibility to the operating budgets of health care oversight entities

194th Legislature (2025-2026) Introduced by Nick Collins

Requires Massachusetts health insurers to financially contribute to operating budgets of health care oversight regulatory entities.

House concurred
0
WeVote Research Nonpartisan
Bill Summary · SD 1933

Legislative bill overview

SD 1933 requires health insurers operating in Massachusetts to contribute financially to the operating budgets of health care oversight entities. The bill establishes a mechanism for insurers to share costs in funding the regulatory and administrative infrastructure that oversees the health care system in which they operate.

Why is this important

Health care oversight entities—such as agencies that license providers, monitor quality standards, and enforce regulations—require sustained funding. Currently, these costs may fall primarily on state budgets or hospitals. Shifting some financial responsibility to insurers could reduce state expenditures and align costs with industry stakeholders who benefit from the regulatory framework, though it may ultimately affect insurance premiums for consumers.

Potential points of contention

  • Cost pass-through risk: Insurers typically pass regulatory costs to policyholders through higher premiums, potentially increasing health insurance costs for Massachusetts residents rather than reducing state spending
  • Fairness and burden allocation: Determining fair contribution formulas is complex—should costs be split equally among insurers, by market share, or by claims volume? This could disadvantage smaller insurers or those serving sicker populations
  • Regulatory scope ambiguity: The bill's language about which entities qualify as "health care oversight entities" may be unclear, potentially creating disputes over funding obligations and what constitutes legitimate oversight costs

Compiled from official sources — confirm details with the bill’s official record.

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